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The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. C. D. Mote, Jr., is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.national-academies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to increase the benefits that transportation contributes to society by providing leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Board’s varied committees, task forces, and panels annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Contents i Contents Summary ................................................................................................................................................... S-1 Chapter 1, Grant Assurance Summaries, Generally Applicable Grant Assurances ...................................... 1 Section 1.1 Airport Access, Leasing and User Relations .............................................................................. 3 1.1.1 Grant Assurance 22.a, Economic Nondiscrimination ................................................................... 3 1.1.2 Grant Assurance 22.b, Requirement for Reasonable and not Unjustly Discriminatory Service by Commercial Service Providers ............................................................................................................... 9 1.1.3 Grant Assurance 22.c, FBO Fees and Charges ............................................................................ 12 1.1.4 Grant Assurance 22.d, Air Carrier Servicing .............................................................................. 15 1.1.5 Grant Assurance 22.e, Air Carrier Rules, Regulations, Conditions and Rates ............................ 18 1.1.6 Grant Assurance 22.f, Aircraft Owner/Operator Right to Self Service ....................................... 22 1.1.7 Grant Assurance 22.g, Sponsor Commercial Services (Proprietary Rights) ............................... 26 1.1.8 Grant Assurance 22.h, Reasonable Conditions for Safety and Efficiency .................................. 29 1.1.9 Grant Assurance 22.i, Access Restrictions for Safe Operation/Civil Aviation Needs ................ 34 1.1.10 Grant Assurance 23, Exclusive Rights ...................................................................................... 38 1.1.11 Grant Assurance 36, Access by Intercity Buses ........................................................................ 44 1.1.12 Grant Assurance 38, Hangar Construction ................................................................................ 47 1.1.13 Grant Assurance 39, Competitive Access ................................................................................. 50 Section 1.2 Finance and Revenue ............................................................................................................... 52 1.2.1 Grant Assurance 24, Fee and Rental Structure ............................................................................ 52 1.2.2 Grant Assurance 24, Air Service Incentive Programs ................................................................. 61 1.2.3 Grant Assurance 25, Airport Revenues ....................................................................................... 65 1.2.4 Grant Assurance 25 (Mineral Revenue Exception) ..................................................................... 75 1.2.5 Grant Assurance 26.a., d., Reports and Inspections .................................................................... 79 Section 1.3 Operation and Safety ................................................................................................................ 82 1.3.1 Grant Assurance 19, Operations and Maintenance ..................................................................... 82 1.3.2 Grant Assurance 20, Hazard Removal and Mitigation ................................................................ 87 1.3.3 Grant Assurance 21, Compatible Land Use ................................................................................ 91 1.3.4 Grant Assurance 11, Pavement Preventive Maintenance ............................................................ 95 1.3.5 Grant Assurance 29, Airport Layout Plan ................................................................................... 98 1.3.6 Grant Assurance 30, Civil Rights .............................................................................................. 102 1.3.7 Grant Assurance 37, Disadvantaged Business Enterprises........................................................ 107 Section 1.4 Ownership and Control .......................................................................................................... 111

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Contents ii 1.4.1 Grant Assurance 4, Good Title .................................................................................................. 111 1.4.2 Grant Assurance 5.a, b, e, f, Preserving Rights and Powers (General Requirements) .............. 114 1.4.3 Grant Assurance 5.c, d, Preserving Rights and Powers (Noise Compatibility) ......................... 119 1.4.4 Grant Assurance 5.g, Preserving Rights and Powers (TTF Operations) ................................... 122 1.4.5 Grant Assurance 31.a Disposal of Land (Noise Compatibility) ................................................ 127 1.4.6 Grant Assurance 31.b (Airport Development) .......................................................................... 132 Section 1.5 Federal Aircraft and Facilities ................................................................................................ 136 1.5.1 Grant Assurance 27 Use by Government Aircraft ..................................................................... 136 1.5.2 Grant Assurance 28, Land for Federal Facilities ....................................................................... 139 Section 1.6 Grant Assurance 1, General Federal Requirements ............................................................... 142 1.6.1 Requirements for Management, Operations and Finance ......................................................... 144 1.6.2 Civil Rights Requirements ........................................................................................................ 149 Chapter 2 Grant Assurance Summaries, Project-specific Requirements .................................................. 158 Section 2.1 Grant Assurance 1, General Federal Requirements ............................................................... 160 2.1.1 General Environmental Requirements....................................................................................... 162 2.1.2 Historical and Archeological Preservation ................................................................................ 165 2.1.3 Land and Water Usage .............................................................................................................. 168 2.1.4 Civil Rights Requirements ........................................................................................................ 173 2.1.5 Labor and Employment Standards ............................................................................................ 177 2.1.6 Project Finance and Accountability Requirements ................................................................... 180 2.1.7 Other Requirements ................................................................................................................... 182 Section 2.2 Sponsor Capability ................................................................................................................. 185 2.2.1 Grant Assurance 2, Responsibility and Authority of the Sponsor ............................................. 185 2.2.2 Grant Assurance 3, Sponsor Fund Availability ......................................................................... 188 Section 2.3 Local Involvement ................................................................................................................. 190 2.3.1 Grant Assurance 6, Consistency with Local Plans .................................................................... 190 2.3.2 Grant Assurance 7, Consideration of Local Interest .................................................................. 193 2.3.3 Grant Assurance 8, Consultation with Users. ............................................................................ 195 2.3.4 Grant Assurance 9, Public Hearings (Public Hearing Requirements) ....................................... 197 2.3.5 Grant Assurance 9, Public Hearings (Governing Body Requirements) .................................... 199 2.3.6 Grant Assurance 10, Metropolitan Planning Organization........................................................ 201 Section 2.4 Project Implementation .......................................................................................................... 203

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Contents iii 2.4.1 Grant Assurance 12, Terminal Development Prerequisites ....................................................... 203 2.4.2 Grant Assurance 14, Minimum Wage Rates ............................................................................. 205 2.4.3 Grant Assurance 15, Veteran’s Preference ................................................................................ 208 2.4.4 Grant Assurance 16, Conformity to Plans and Specifications ................................................... 210 2.4.5 Grant Assurance 17, Construction Inspection and Approval .................................................... 212 2.4.6 Grant Assurance 18. Planning Projects ..................................................................................... 214 2.4.7 Grant Assurance 32, Engineering and Design Services ............................................................ 216 2.4.8 Grant Assurance 34, Policies, Standards and Specifications ..................................................... 219 2.4.9 Grant Assurance 35, Relocation and Real Property Acquisition ............................................... 222 2.4.10 Grant Assurance 37. Disadvantaged Business Enterprises...................................................... 225 Section 2.5 Project Finance and Accountability ....................................................................................... 229 2.5.1 Grant Assurance 13, Accounting System, Audit and Record-keeping Requirements ............... 229 2.5.2 Grant Assurance 26.b, c, Reports and Inspections (Project-specific) ........................................ 232 2.5.3 Grant Assurance 33, Foreign Market Restrictions .................................................................... 234 Chapter 3 Research Implementation ......................................................................................................... 236 Section 3.1 Presentations at Industry Conferences ................................................................................... 236 Section 3.2 Webinars ................................................................................................................................ 236 Section 3.3 FAA Engagement ................................................................................................................... 236 Acknowledgments ..................................................................................................................................... 238 Glossary of Terms, Abbreviations and Acronyms .................................................................................... 241 Figures Figure S-1, Distribution of Cases With and Without Violation .............................................................. ES-6 Figure S-2, Distribution of Determinations in Opinion Letters and Memoranda ................................... ES-7 Figure S-3, Distribution of Judicial Decisions Related to Grant Assurances ......................................... ES-8 Figure S-4, Matrix Color-Coding Key, Generally Applicable Requirements ....................................... ES-10 Figure S-5, Matrix Color-Coding Key, Project-Specific Requirements ............................................... ES-11 Tables Table S-1, List of Generally Applicable Grant Assurances by Subject ................................................ ES-12 Table S-2, List of Project-Specific Grant Assurances by Subject ........................................................ ES-13 Table S-3, Airport Sponsor Grant Assurance Summary Matrix ........................................................... ES-14 Table 1, Requirements for Management, Operations and Finance ........................................................... 144 Table 2, Civil Rights Requirements .......................................................................................................... 149

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Contents iv Table 3, General Environmental Requirements ........................................................................................ 162 Table 4, Requirements for Historical and Archeological Preservation ..................................................... 165 Table 5, Land and Water Usage Requirements ......................................................................................... 168 Table 6, Civil Rights Requirements .......................................................................................................... 173 Table 7, Labor and Employment Standards .............................................................................................. 177 Table 8, Project Finance and Accountability Requirements ..................................................................... 180 Table 9, Other Requirements .................................................................................................................... 182

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-1 S U M M A R Y Section S-1 What is This Guidebook About? Over 3,000 airports in the United States have, at one time or another, received an Airport Improvement Program (AIP) grant from the FAA for airport planning or development, and many of these airports receive grants on a yearly basis. Each AIP grant currently issued by the FAA comes with certain requirements that must be met. There are 39 numbered requirements, called Grant Assurances, that cover a broad range of topics, from construction wages paid on an AIP funded project, to fees charged for the use of an airport. To complicate the issue, many of these 39 Grant Assurances themselves contain multiple requirements. Complying with each requirement can be challenging for airports, especially small airports with minimal staff, and failure to comply can disqualify airports from federal funding. This Guidebook is intended to provide a comprehensive summary of all the requirements included in the 39 Grant Assurances applicable to airport Sponsors (owners or operators of the airport that execute the AIP grant agreements containing the Grant Assurances). The Guidebook describes the requirements, identifies actions that are required, those that are prohibited, identifies exceptions, describes the duration and applicability of the requirements, and discusses the potential consequences of non-compliance. The Technical Appendices in Volume 2 of this Guidebook are intended to provide supplemental information that may assist airport staff and other Stakeholders in understanding which Grant Assurances apply to a particular situation, and what is required to achieve or maintain compliance. Airport Sponsors are not the only entities that receive AIP grants. Planning agencies also receive grants, and jurisdictions adjacent to airports may receive noise compatibility grants. The Guidebook does not address the Grant Assurances associated with these categories of Sponsors. In addition, federal obligations may be imposed on airport Sponsors through donation of federal land to the airport. The Guidebook does not address the obligations associated with donations of federal land. Section S-2 Why Was the Guidebook Written? Failure to properly understand, and carry out, the requirements of these Grant Assurances can have serious consequences for an airport. A violation that is not corrected through voluntary action can lead to a loss of funding for an individual project, the loss of eligibility to receive future grants, or even civil enforcement action. It is, therefore, important for airport management and staff, the officials of an airport’s governing body, and other local officials whose actions could affect an airport’s compliance status to have at least a basic understanding of the Grant Assurance requirements. For airport staff in particular, a more in-depth understanding is crucial. It is also important for airport users to understand the Grant Assurance requirements, so that they can readily determine whether an airport action that adversely affects them qualifies as a violation of a Grant Assurance requirement, justifying intervention by the FAA. Much information is currently available to airport staff and airport users describing the Grant Assurance requirements, including FAA orders, FAA advisory circulars, FAA compliance guidance letters and previous ACRP publications. The volume of this guidance material, and the multiplicity of sources, can itself present an impediment to identifying Grant Assurance requirements, and applying them

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-2 to a particular situation for airport staff and other Stakeholders with limited time and limited understanding of these requirements. The Guidebook is intended to provide a single, comprehensive, and flexible reference tool that can be used to provide both an overview of the Grant Assurances and in-depth information on particular requirements or issues. In addition, an accompanying PowerPoint presentation was developed for use by airport staff when briefing interested Stakeholders, such as governing bodies and other local officials. The PowerPoint presentation can be tailored based on the purpose of a briefing, or the needs of a particular audience. Section S-3 Who Should Understand and Use This Guidebook? This Guidebook has been designed to be used as a reference by various groups interested in understanding the Grant Assurance requirements, including the following:  Airport management and staff  Airport users and tenants  Airport governing bodies  Local communities neighboring the airport  Other Stakeholders The Guidebook is designed primarily for individuals who have not had extensive exposure to the subject of the Grant Assurances and their compliance requirements, although the supplementary information in the Technical Appendices may be useful to more knowledgeable or experienced individuals, dealing with a specific issue. Airport Management and Staff This Guidebook is intended to be used by all levels of airport management and staff. It can be used by those seeking a general understanding of the Grant Assurance requirements, and by those trying to address, or resolve, a particular issue, or concern. Airport Users and Tenants Airport users include: air carriers, air taxis and air charter operators; individual or corporate aircraft owners and operators; specialized commercial aviation activities, such as aerial spraying, banner towing, or commercial skydiving operations; fixed-base operators (FBOs), providing a full range of services to the public and other aviation entities at the airport; and specialized aviation services operations (SASOs), which provide limited services, or even single services, e.g., engine maintenance and repair, or aircraft leasing. Airport Users and Tenants include:  Air carriers  FBOs  Banner towing and aerial spraying  SASOs

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-3 Airport users can employ the Guidebook to obtain a general understanding of the Grant Assurance requirements, and to identify the particular Grant Assurance requirement that may govern a Sponsor action of concern to the user and, once identified, to obtain a full understanding of the airport’s obligations and responsibilities, including any prohibited actions. Airport Governing Bodies Airports have a variety of governance structures, including direct city/county ownership, state ownership, single purpose authority ownership, or multi-purpose authority ownership. The level of sophistication and understanding of airport operations and obligations can vary widely between governing bodies, and among individual governing body members. It is likely that governing body members will rarely employ the Guidebook directly to inform their decision-making. Rather, it is more likely that airport staff will present to the governing body the information from the Guidebook that is relevant to a particular issue, or decision. The PowerPoint presentation accompanying the Guidebook is intended to assist airport staff in preparing and delivering these presentations. It is also likely that a governing body will be most interested in, or need to be informed about, specific Grant Assurance requirements, such as the requirements for the use of airport revenue, requirements for airport fees, and land-use compatibility requirements. Local Communities Neighboring the Airport The areas surrounding an airport are often under the jurisdiction of a local government that does not operate the airport. The Guidebook and accompanying PowerPoint presentation can be used by airport staff to educate these neighboring communities, and their officials, in the same manner that this material is used to educate an airport’s governing body. Like the governing body, it is likely that the interest of the neighboring community will be focused on specific Grant Assurance requirements. In this case, those requirements might include the requirements for local coordination of major airport construction projects, and for land-use compatibility. Some aspects of the requirements for the use of airport revenue might also be of interest to these communities. Other Stakeholders Other Stakeholders include a variety of individuals or groups who may be affected by Grant Assurances, or otherwise have an interest in better understanding Grant Assurance obligations. These Stakeholders include the following:  State Block Grant administrators  Airport consultants  Airport attorneys  Airport industry associations  Airport financial advisors, lenders, investors, and rating agencies  Concessionaires and contractors subject to disadvantaged business enterprise (DBE) requirements, including firms designated as DBEs  Airline passengers  Local citizens

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-4 Section S-4 How Was the Guidebook Developed? S-4.1 The Research Process The research conducted for this Guidebook was performed through the ACRP. The ACRP was developed to address issues of direct concern to airport management, and other groups with interest in the National Airspace System (NAS). The results of ACRP research efforts are intended to have practical application in the day-to-day operations and management of airports within the NAS. The research involved four major elements: 1. Interviews with FAA and State Block Grant staff. Interviews were conducted with staff from the FAA Airport Compliance Division in the FAA Headquarters, current or former compliance specialists from three FAA regions, and three FAA Airport District Offices (ADOs). Interviews were also conducted with officials from four states participating in the FAA’s State Block Grant Program. Under the State Block Grant Program, state aviation agencies are responsible for administering AIP grants for general aviation (GA) airports, and airports with low levels of scheduled airline services, including administering the AIP Grant Assurances. 2. Stakeholder outreach with airports and airport users. Three focus groups were conducted at industry conferences held by AAAE or ACI-NA. A webinar was conducted with one ACI-NA committee, and a survey was conducted with one AAAE committee. Participants included representatives of all categories of airports, from large hub airports, as defined by the FAA, to GA airports. A focus group was conducted with staff and members of three airport-user associations. 3. Review of resource and reference materials. Resource materials identified in the ACRP work scope, and identified in elements 1 and 2 above, were reviewed and catalogued. The materials that are currently available through the internet are summarized in Appendix F in Volume 2. Substantial effort was devoted to reviewing individual administrative determinations, and legal and advisory opinions and memos, compiled in ACRP Legal Research Digest (LRD) 21, Compilation of Airport Legal Determinations and Opinion Letters Through December 2012; judicial decisions relating to Grant Assurance compliance, compiled in ACRP LRD 13, An Index and Digest of Decisions: Compilation of Airport Law Resources; and FAA administrative decisions issued from January 1, 2013 through February 24, 2016, included in the FAA’s Part 16 database. Part 16 refers to 14 CFR Part 16, which is the regulation governing procedures for investigations and reviews of complaints, regarding compliance with Grant Assurance requirements. 4. Technical Review of Grant Assurance Summaries. Following completion of draft versions of the contents of Chapters 1 and 2 of the Guidebook, the drafts were sent to the FAA offices and State Block Grant offices that participated in the interview process of step 1 for technical review. Copies were also provided to the ACI-NA Legal Committee Steering Group for technical review. ACRP LRD 21 includes the full text of FAA/U.S.DOT administrative decisions and advisory opinions through December 2012

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-5 S-4.2 Research Results—Stakeholder Outreach The outreach efforts in elements 1 and 2 of the research efforts listed above addressed a number of subjects, including structure of the Guidebook and information to be included. The organization and content of the Guidebook reflect this input. A major focus of the outreach effort was obtaining participants’ opinions on the Grant Assurance requirements that were the most complex, based on either the substance of the requirement, the frequency with which the requirement was the subject of questions or discussions, or the frequency with which the requirement was included in an informal or formal administrative complaint. While there was not complete unanimity, the following Grant Assurances (in numerical order) were generally identified as complex by participants in the outreach phase of the research:  Grant Assurance 5, Preserving Rights and Powers  Grant Assurance 19, Operation and Maintenance  Grant Assurance 21, Compatible Land Use  Grant Assurance 22, Economic Nondiscrimination  Grant Assurance 23, Exclusive Rights  Grant Assurance 24, Fee and Rental Structure  Grant Assurance 25, Airport Revenues S-4.3 Understanding Grant Assurance Requirements—the Scope of the Problem Substantial time and effort was devoted to reviewing individual FAA/U.S.DOT administrative determinations, advisory and legal opinions and memoranda, and judicial decisions. This exercise was conducted to gauge the extent that difficulty in understanding Grant Assurance requirements translated into problems in operation and management of the airport, in the form of complaints, investigations and findings of violation. The documents reviewed were also the source of many of the common questions and examples included in the Grant Assurance Summaries, and the expanded list of questions and answers included in Appendix E in Volume 2. For a Sponsor that is the subject of a complaint or investigation, a lack of understanding of the Grant Assurance requirements is a serious problem; however, considering that there are over 3,000 obligated airports, and that the documents reviewed covered the period from the late 1990s through February 2016, the data resulting from the review of these resources does not indicate that a lack of understanding of the Grant Assurances presents a problem for most airports, at least not in the form of complaints or investigations. Similarly, it does not indicate that violations are widespread or frequent. The figures and text below show the number of determinations or opinions, sorted by type, that involve questions of Grant Assurance compliance, and the number of times when a determination found that a violation had occurred. Figures and tables included in Appendix A in Volume 2 show the frequency that specific Grant Assurances were addressed in a determination, opinion or memorandum, and the frequency that violations were found. S-4.3.1 Data from Administrative Determinations The data from FAA and DOT determinations includes the 245 determinations appearing in LRD 21 and the 17 FAA dockets reviewed in the FAA Part 16 database.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-6 The number of cases (complaints or investigations) considered by the FAA and U.S.DOT is, however, substantially lower. Under Part 16 (and in earlier cases decided under Part 13, which governed investigations of formal complaints of Grant Assurance violations before adoption of Part 16), the FAA’s initial determination is a Director’s Determination (DD), issued by the Director, Office Airport Compliance and Management Analysis, in most cases. For Grant Assurances relating to compliance with requirements for DBE participation (including airport concession disadvantaged business enterprise (ACDBE)), and compliance with requirements of Title VI of the Civil Rights Act of 1964, 42 USC §§2000d-2000d-4, the DD is issued by the Associate Administrator for Civil Rights. Part 16 provides that a party can appeal an adverse determination to the Associate Administrator for Airports (Associate Administrator), who issues the Final Agency Decision (FAD). In addition, if the DD finds that a violation of the Grant Assurances is occurring, the airport Sponsor has the option to request an oral evidentiary hearing, in lieu of a direct appeal to the Associate Administrator. Similarly, for those disputes over airport charges to air carriers, decided under 14 CFR Part 302, Subpart F, an initial determination will be made by an administrative law judge (ALJ), subject to appeal to the Secretary of Transportation. The 245 determinations included in LRD 21 include DDs, FADs issued on appeal in the same proceedings (with or without oral evidentiary hearings), hearing officer and ALJ decisions, and final decisions under 14 CFR Part 302, Subpart F. Therefore, although LRD 21 includes 245 separate determinations, the number of cases (complaints or investigations) considered by the FAA and DOT is substantially less. The data presented below are based on the number of cases considered by the FAA and DOT. A total of 179 cases, from both LRD 21 and the Part 16 database, were reviewed. A total of 45 resulted in a finding of violation. A total of 134 cases resulted in a finding of no violation, or were dismissed on procedural grounds. Figure S-1 presents this data graphically. Source: LRD 21 and FAA Part 16 database Figure S-1, Distribution of Cases With and Without Violation No Violation 75% (134) Violation 25% (45) Twelve of the 13 findings of violations in opinions involved Grant Assurance 25, Airport Revenues.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-7 S-4.3.2 Data from Opinions and Memoranda LRD 21 includes 51 records of opinions issued by the FAA, the DOT, or the U.S.DOT Office of the Inspector General (OIG); however, some of these records were summaries or digests of other individual opinions included in LRD 21, or otherwise represented duplications. Therefore, only 33 records involved specific individual issues considered by these agencies. Of this total, 11, or one-third, were issued by the OIG. Of the 33 separate opinions reviewed, 12 resulted in an unambiguous finding of no violation, 13 resulted in a definitive determination of a violation, and 11 had mixed outcomes, or a determination could not be readily ascertained from the opinion. Figure S-2 shows the distribution of these results, graphically. The higher rate of violations can be attributed to a number of factors. As shown in Figure A- 5 in Appendix A in Volume 2, 12 of the 13 findings of violations involved Grant Assurance 25, Airport Revenues. Many of the opinions were provided to airport Sponsors before they took a particular course of action. Having received a negative determination, they typically did not proceed with that course of action. This result may reflect no more than the complexity of the requirements for compliance with Grant Assurance 25. One-third of the opinions (33) were issued by the OIG, with all of them addressing Grant Assurance 25, in whole or in part. OIG investigations may be started as an independent initiative of the OIG, a Congressional referral, a DOT or FAA referral, or a referral from another party. The OIG, in considering the requirements of Grant Assurance 25, has in some cases applied different interpretations of Grant Assurance 25 than the FAA. For example, the OIG has interpreted Grant Assurance 25 to prohibit leasing airport land for nonaeronautical use to a third party at less than fair market value (FMV) to be a violation of Grant Assurance 25. The FAA in contrast has found that leasing at less than FMV to a third party to be a violation of Grant Assurance 24, Fee and Rental Structure, but not Grant Assurance 25. When these differences arise, the OIG and the FAA attempt to resolve any differences through consultation. For this issue, the consultation resulted in the OIG agreeing with the FAA’s interpretation. If the FAA and OIG cannot reach agreement, the matter may be referred to the Assistant Secretary for Administration within the U.S.DOT. The opinions and memoranda included in LRD 21 may not have included all of the determinations resulting from this resolution process. Source: LRD 21 Figure S-2, Distribution of Determinations in Opinion Letters and Memoranda No Violation 36% (12) Violation 39% (13) Uncertain/Mixed 24% (8)

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-8 S-4.3.3 Data from Judicial Decisions (LRD 13) LRD 13 contains digests of a total of 385 federal judicial decisions that were identified as related to airports. Decisions include decisions on suits brought directly in U.S. district courts, appeals of federal agency decisions brought in U.S. district courts, appeals of district court decisions and agency decisions to the U.S. circuit courts of appeal, and cases brought before the Supreme Court. The full text of each decision is included in PDF format. The cases are arranged alphabetically by plaintiff or petitioner. Of the 385 decisions, 316 involved no grant assurance issues. Of the remaining 69 decisions that involved Grant Assurance issues, the Grant Assurance requirement was often at issue indirectly. For example, a plaintiff may be challenging an access restriction as unreasonable, under the commerce clause of the Constitution, or under 42 USC §1983 (which provides a federal remedy for violations of civil rights). The standards of unreasonableness applied in such actions (when they are considered on the merits) are similar to the standards applied by the FAA in evaluating claims that airport access restrictions violate Grant Assurance 22, Economic Nondiscrimination. Similarly, the standards applied to a claim that a rate or fee is unreasonable, and therefore violates the Anti-Head Tax Act, 49 USC §40116 (when considered on the merits), are similar to the standards applied by the FAA or DOT in evaluating claims that a rate or fee is unreasonable under Grant Assurance 22. Of the 69 decisions involving Grant Assurance issues (directly or indirectly), 27 resulted in an unambiguous finding of no violation, 14 resulted in a definitive determination of a violation, and 23 did not result in definitive determinations. The latter group consisted of decisions dismissed for lack of jurisdiction or lack of standing, for the most part. Figure S-3 shows the distribution of these results, graphically. Source LRD 13 Figure S-3, Distribution of Judicial Decisions Related to Grant Assurances

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-9 Section S-5 How is this Guidebook Organized? The Guidebook (Volume 1) consists of this Summary and two chapters. The contents of each are described immediately below. Volume 2 consists of Technical Appendices that provide more detailed information on the Grant Assurance requirements, and resource material available, to assist in understanding the Grant Assurance requirements. The contents of Volume 2 are summarized following the discussion of the contents of the Guidebook. The Summary is being made available in printed form, and as a web document. The Guidebook, Technical Appendices, and Research Report (Volume 3) are available exclusively as web-only documents.  Summary. Sections 1-4 of the Summary, above, discussed the purpose of this Guidebook and its target audience, and provided brief summaries of the research process and research results. Section S-6 provides, in table form, a matrix of high-level information about the Grant Assurances, such as duration and applicability. The table is presented in the sequential order that the Grant Assurances appear in grant agreements. The table includes references to the sections in the remaining chapters of the Guidebook, which will link directly to those sections, when viewed in electronic form. Additional information on the format and structure of the table is included in Section S-6.  Section S-7 describes the consequences if the FAA determines that a Sponsor has not complied with one or more Grant Assurance requirements. The Grant Assurances fall into two broad categories: (1) Grant Assurances generally applicable to airport operations, management or finance; and (2) Grant Assurances applicable to the planning or implementation of AIP-funded projects (project-specific requirements). The remaining chapters each address one of these two categories.  Chapter 1 presents the summaries for generally applicable Grant Assurances relating to airport operations, management or finance. The organization and content of the summaries are described in more detail in the Introduction to Chapter 1.  Chapter 2 presents the summary pages for project-specific Grant Assurances relating to planning, design and implementation of projects. Volume 2 consists of Technical Appendices that provide additional, detailed information about the Grant Assurance requirements for readers desiring a more in-depth understanding. Volume 2 includes six Appendices, as follows:  Appendix A provides data on the frequency with which individual Grant Assurance requirements were addressed in the determinations and opinions discussed in Section ES-4.3.  Appendix B provides the full text of the current version of the Grant Assurances, as they appear in grant agreements.  Appendix C lists the resources and references identified for each Grant Assurance. Appendix C will first present the resources and references for generally applicable Grant Assurances, in numerical order, and then the Resources and References for project-specific Grant Assurances, also in numerical order; however, the Resources and References for Grant Assurance 1,

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-10 General Federal Requirements, will be presented in the tables addressing Grant Assurance 1 in each of the two chapters described above.  Appendix D presents the list of airports determined by the FAA to be “grandfathered” under Grant Assurance 25, Airport Revenues.  Appendix E presents an expanded list of Questions and Answers (Q & As), with more entries than are included in the individual Grant Assurance summaries. The expanded list includes issues that arise rarely, and is included for the benefit of airport staff facing an unusual issue that may have arisen before. The expanded Q & As are based on the review of the administrative determinations, agency opinions and judicial decisions described in Section ES- 4.3, above.  Appendix F presents a brief synopsis of the resources and references listed in Appendix C. Appendix F is organized by the source of the resource or reference. Section S-6 How Are the Grant Assurances Summarized? This section presents summary information for each Grant Assurance requirement, including applicability (generally applicable or project specific), project type (e.g., construction or equipment acquisition), duration, related Grant Assurance requirements, and a cross-reference to the section of the Guidebook where the requirement is discussed. In electronic versions of the Guidebook, the cross- reference will provide a link to the text of the referenced Grant Assurance Summary. The matrix is presented in the same order as the Grant Assurances themselves; however, the Grant Assurance Summaries for generally applicable Grant Assurances are presented in Chapter 1, and project- specific Grant Assurances are presented in Chapter 2. Moreover, in Chapter 1, the generally applicable Grant Assurances are grouped into five subject areas, plus Grant Assurance 1, General Federal Requirements. The generally applicable Grant Assurance 1 requirements are further grouped into two subject areas. The matrix rows for generally applicable Grant Assurances are color-coded to these seven subject areas. Figure S-4, below, provides the key to the color-coding scheme for the generally applicable requirements. Figure S-4, Matrix Color-Coding Key, Generally Applicable Requirements Grant Assurance 1, Requirements for Management, Operations and Finance Grant Assurance 1 Civil Rights Requirements Ownership and Control Operation and Safety Airport Access, Leasing and User Relations Finance and Revenue Federal Aircraft and Facilities

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-11 The project-specific Grant Assurance requirements presented in Chapter 2 are grouped into four subject areas, plus Grant Assurance 1. Project-specific Grant Assurance 1 requirements are further grouped into seven subject areas. The matrix rows for project-specific Grant Assurances are color-coded to these 11 subject areas. Figure S-5 provides the key to the color-coding for the project-specific requirements. Figure S-5, Matrix Color-Coding Key, Project-Specific Requirements There are two exceptions to this color-coding system. Title 49, Subtitle VII in Grant Assurance 1 covers most, if not all, of the subject areas included in both the Generally Applicable Requirements and Project-Specific Requirements. Therefore, it is not shaded. Grant Assurance 37, Disadvantaged Business Enterprises includes both Generally Applicable Requirements and Project-Specific Requirements. The row is split with the appropriate color-coding for each category of requirement. As a further guide to how the Grant Assurance requirements were sorted into categories, Table S-1 and Table S-2 list (for Generally Applicable Grant Assurances and Project-Specific Grant Assurances, respectively) the Grant Assurances included in each subject area (using the same color-coding), except for Grant Assurance 1, General Federal Requirements. Grant Assurance 1, Labor and Employment Standards Grant Assurance 1, Land and Water Usage Grant Assurance 1, Historical and Archeological Preservation Grant Assurance 1, General Environmental Requirements Grant Assurance 1, Civil Rights Requirements Grant Assurance 1, Project Finance and Accountability Requirements Grant Assurance 1, Other Requirements Sponsor Capability Local Involvement Project Implementation Project Finance and Accountability

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-12 Table S-1 List of Generally Applicable Grant Assurances by Subject Subject GA Number Title Ownership and Control 4 Good Title 5 Preserving Rights and Powers 31.a, b Disposal of Land Operation and Safety 11 Pavement Preventative Maintenance 19 Operation and Maintenance 20 Hazard Removal and Mitigation 21 Compatible Land Use 29 Airport Layout Plan 30 Civil Rights 37 Disadvantaged Business Enterprises Airport Access, Leasing and User Relations 22.a-i Economic Nondiscrimination 23 Exclusive Rights 36 Access by Intercity Buses 38 Hangar Construction 39 Competitive Access Finance and Revenue 24 Fee and Rental Structure 25 Airport Revenues 26.a, d Reports and Inspections Federal Aircraft and Facilities 27 Use by Government Aircraft 28 Land for Federal Facilities

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-13 Table S-2 List of Project-Specific Grant Assurances by Subject The Summary Matrix is presented in Table S-3. The information in the matrix is also presented in the individual Grant Assurance Summaries in Chapters 1 and 2. Subject GA Number Title Sponsor Capability 2 Reponsibility & Authority of the Sponsor 3 Sponsor Fund Availability Local Involvement 6 Consistency with Local Plans 7 Consideration of Local Interest 8 Consultation with Users 9 Public Hearings 10 Metropolitan Planning Organizations Project Implementation 12 Terminal Design Prerequisites 14 Minimum Wage Rates 15 Veteran's Preference 16 Conformity to Plans and Specifications 17 Construction Inspection & Approval 18 Planning Projects 32 Engineering and Design Services 34 Policies, Standards and Specifications 35 Relocation & Real Property Acquisition 37 Disadvantaged Business Enterprises Project Finance & Accountability 13 Accounting System, Audit and Record- Keeping Requirements 26.b, c Reports and Inspections 33 Foreign Market Restrictions

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-14 Table S-3, Airport Sponsor Grant Assurance Summary Matrix Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 1. General Federal Requirements Statutes a. Title 49, USC, subtitle VII2 PR, GEN ALL Varies 1.6.1 b. Davis-Bacon Act PR CO, EQ, LA, NO3 GC GA1, Regulations # h. 2.1.5 c. Federal Fair Labor Standards Act PR ALL GC GA1, Regulations # i; # j. 2.1.5 d. Hatch Act GEN ALL UL1 1.6.1 e. Uniform Relocation and Relocation Assistance Policies Act of 1970 PR LA4 GC GA1, Regulations # p. 2.1.3 f. National Historic Preservation Act of 1966 PR CO, LA, NO GC GA1, Statutes # g. # h. 2.1.2 g. Archeological and Historic Preservation Act of 1974 PR CO, LA, NO GC GA1, Statutes # f., # h 2.1.2 h. Native American Graves Repatriation Act PR CO, LA, NO GC GA1, Statutes # f. and # g. 2.1.2 i. Clean Air Act PR CO, LA, NO GC GA 1, Statutes # v. 2.1.1 j. Coastal Zone Management Act PR CO, LA, NO GC GA 1, Statutes # v. 2.1.3 k. Flood Disaster Protection Act PR CO, LA, NO GC GA 1, Statutes # v. 2.1.3 l. Title 49 USC §303 (formerly known as section 4(f)) PR CO, LA, NO GC GA 1, Statutes # v. 2.1.1 Applicability Project Type Duration GEN - General Airport Operation & Management PR - AIP Funded Planning, Design or Development Only ALL - All Type of Projects CO - Construction EQ - Equipment Acquisition LA - Land Acquisition NO - Noise Compatibility GC - Grant Closeout UL - Useful Life 1 1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be  less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the  useful life of the project.  2  Subtitle VI encompasses the requirements of most, if not all of the Grant Assurances (other than the remainder of Grant  Assurance 1). Therefore, the duration of the obligations will depend on the specific requirement being considered.  3  For EQ, requirement applies only to projects that include installation; for LA and NO, requirement applies only to projects  that include a construction element.  4  Includes acquisition of land or real property interest for noise compatibility. 

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-15 Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 1. (con't) Statutes m. Rehabilitation Act of 1973 GEN ALL UL 1 GA 1, Statutes # o.; Regulations # f., # r., # s.; GA 30 1.6.2 n. Title VI, Civil Rights Act of 1964 GEN ALL IN #1, Regulations # g.; GA 30 1.6.2 o. Americans With Disabilities Act of 1990 GEN ALL UL 1 GA 1, Statutes # m.; Regulations # f., # r., # s.; GA 30 1.6.2 p. Age Discrimination Act of 1975 GEN ALL UL 1 GA 30 1.6.2 q. American Indians Religious Freedom Act PR CO, EQ, LA, NO 3 GC GA 1, Statutes # v. 2.1.4 r. Architectural Barriers Act of 1968 PR CO, NO GC GA 1, Statutes # m., # o.; Regulations # f., # r., # s.; GA 30 2.1.4 s. Power Plant & Industrial Fuel Use Act GEN ALL UL 1 None 1.6.1 t. Contract Work Hours & Safety Standards Act PR ALL GC GA 1, Statutes # c.; Regulations # j. 2.1.5 u. Copeland Anti-kick Back Act PR ALL GC None 2.1.5 v. National Environmental Policy Act of 1969 PR CO, EQ, LA, NO 4 BE GA 1, Statutes # i., # j., # k., # l., # q., # w. 2.1.1 w. Wild and Scenic Rivers Act PR CO, EQ, LA, NO 4 BE GA 1, Statutes # v. 2.1.3 x. Single Audit Act of 1984 PR ALL GC GA 1, Regulations # b.; GA 13, GA 25, GA 26 2.1.6 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility  BE ‐Must Be Completed Before Grant is  Issued  GC ‐ Grant Closeout  IN ‐ Indefinite, i.e. so long as the   Airport is operating, or until released by the  FAA  UL ‐ Useful Life 1  1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be  less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the  useful life of the project.  3  For EQ, requirement applies only to projects that include installation; for LA and NO, requirement applies only to projects  that include a construction element.  4  Includes acquisition of land or real property interest for noise compatibility. 

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-16 Assurance No. Assurance Title Applicabilit y Project Type Duratio n Related Assurances Guidebook Section No. 1. (con't) Statutes y. Drug-Free Workplace Act of 1988 GEN ALL UL 1 1.6.1 z. The Federal Funding, Accountability and Transparency Act of 2006 PR ALL5 GC 2.1.6 1 (con't) Executive Orders (EO) a. EO 11246 -- Equal Employment Opportunity GEN ALL UL 1 GA 1, Regulations # k. 1.6.2 b. EO 11990 -- Protection of Wetlands PR CO, EQ, LA, NO 3 GC GA 1, Statutes # j. 2.1.1 c. EO 11998 -- Flood Plain Management PR CO, EQ, LA, NO 3 GC GA 1, Statutes # k. 2.1.3 d. EO 12372 -- Intergovernmental Review of Federal Programs PR ALL BE None 2.1.7 e. EO 12699 -- Seismic Safety of Federal and Federally Assisted New Building Construction PR CO, EQ, LA, NO3 GC GA 1, Regulations # w. 2.1.7 f. EO 12898 -- Environmental Justice PR CO, LA, NO GC GA 1, Statutes # v. 2.1.4 1 (con’t) Federal Regulations a. 2 CFR Part 180 -- OMB Guidelines to Agencies on Suspension & Debarment PR ALL BE GA 1, Regulations # c. 2.1.6 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility  BE ‐ Must Be Completed Before Grant is  Issued  GC ‐ Grant Closeout  UL ‐ Useful Life 1    1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may  be less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of  the useful life of the project.  3  For EQ, requirement applies only to projects that include installation; for LA and NO, requirement applies only to projects  that include a construction element.  5  Requirement applies to all project types, but it only applies to states participating in the State Block Grant Program.

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-17 Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 1. (con't) Federal Regulations b. 2 CFR Part 200 -- Uniform Administrative Requirements, Cost Principles & Audit Requirements for Federal Awards PR ALL GC GA 1, Statutes # x. 2.1.6 c. 2 CFR Part 1200 -- Non- Procurement Suspension and Debarment PR ALL BE GA 1, Regulations # a. 2.1.6 d. 14 CFR Part 13 -- Investigative & Enforcement Procedures, 14 CFR Part 16 -- Rules of Practice for Federally Assisted Airport Enforcement Proceedings GEN, PR6 ALL UL7 GA 1, Statutes # a. 1.6.1 e. 14 CFR Part 150 -- Airport Noise Compatibility PR NO BE GC 8 GA 1, Statutes # a. 2.1.7 f. 28 CFR Part 329 CFR Part 35 – Discrimination on the Basis of Disability in State and Local Government Programs GEN ALL UL1 GA1, Statutes # m., # o., # r.; GA 30 1.6.2 g. 28 CFR §50.3 -- Dep't. of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964 GEN ALL IN GA 1, Statutes # n.; GA 30 1.6.2 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility  BE ‐ Must Be Completed Before Grant is  Issued  GC ‐ Grant Closeout  IN ‐ Indefinite, i.e. so long as the Airport is  operating, or until released by the FAA  UL ‐ Useful Life 1  1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be  less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the  useful life of the project.  3  For EQ, requirement applies only to projects that include installation; for LA and NO, requirement applies only to projects  that include a construction element.  6  While project specific assurances are technically subject to Parts 13 and 16, enforcement is generally accomplished through  the grant administration process  7  For individual Grant Assurances with an indefinite duration, these regulations apply indefinitely.  8  Requirement for an approved Noise Exposure Map (NEM) applies before FAA issues a grant to fund a project to implement a  noise compatibility measure. Requirement for approved noise compatibility program (NCP) applies before FAA issues a grant  to implement a noise compatibility measure, except for soundproofing of educational and medical buildings. Grant closeout  applies to grants to develop NEM, NCP and implement noise compatibility measure. 

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-18 Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 1. (con't) Federal Regulations h. 29 CFR Part 1 -- Procedures for Predetermination of Wages PR CO, EQ, LA, NO3 CG GA 1, Statutes # b. 2.1.5 i. 29 CFR Part 3 -- Contractors & Subcontractors Working on Public Building or Public Work financed in Whole or In Part by Loans or Grants from the United States PR CO, EQ, LA, NO3 GC GA 1, Statutes # c. 2.1.5 k. 41 CFR Part 60 -- Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and federally assisted contracting requirements) PR ALL GC GA1, Exec. Orders # a. 2.1.5 j. 29 CFR Part 5 -- Labor Standards Provisions Applicable to Federal Financed and Assisted Construction (also Labor Standards Provisions Applicable to Non-Construction Contracts Subject to the Contract Work Hours and Safety Standards Act PR CO, EQ, LA, NO3 GC GA 1, Statutes # g, # t. 2.1.5 l. 49 CFR Part 18 -- Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments PR ALL GC Regulations # b. 2.1.7 m. 49 CFR Part 20 -- New Restrictions on Lobbying PR ALL 9 GC None 2.1.7 n. 49 CFR Part 21 -- Non-discrimination in Federally-assisted Programs in the Department of Transportation -- Effectuation of Title VI of the Civil Rights Act GEN ALL UL1 GA 30 1.6.2 o. 49 CFR Part 23 -- Participation by Disadvantaged Business Enterprises in Airport Concessions GEN ALL UL10 GA 37 1.6.2 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility  GC ‐ Grant Closeout  UL ‐ Useful Life 1  1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be  less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the  useful life of the project.  3  For EQ, requirement applies only to projects that include installation; for LA and NO, requirement applies only to projects  that include a construction element.  4  Includes acquisition of land or real property interest for noise compatibility.  9  Contracts must have a value of at least $100,000 for this requirement to apply.  10  Some requirements of 49 CFR Part 23 extend beyond the useful life of the project. The regulation should be consulted. 

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-19 Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 1. (con't) Federal Regulations p. 49 CFR Part 24 -- Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs PR LA4 GC GA1, Statutes # e. 2.1.3 q. 49 CFR Part 26 -- Participation by Disadvantaged Business Enterprises in Department of Transportation Programs PR ALL3 GC GA 37 2.1.4 r. 49 CFR Part 27 -- Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance GEN ALL UL1 GA 1, Statutes # m., # o., # r.; Regulations # f., # s. 1.6.2 s. 49 CFR Part 28 -- Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities Conducted by the Department of Transportation GEN ALL UL1 GA 1, Statutes # m., # o., # r; Regulations # f., # r. 1.6.2 t. 49 CFR Part 30 -- Denial of Public Works Contracts to Suppliers of Goods and Services of Countries that Deny Procurement Market Access to U.S. Contractors PR ALL GC None 2.1.7 u. 49 CFR Part 32 -- Governmentwide Requirements for Drug-Free Workplace (Financial Assistance) GEN ALL UL1 GA1, Statutes # y. 1.6.1 v. 49 CFR Part 37 -- Transportation Services for Individuals with Disabilities GEN ALL UL 1 GA 1, Statutes # m., # o., # r. Regulations # f., # r., # s. 1.6.2 w. 49 CFR Part 41 -- Seismic Safety of Federal and Federally Assisted or Regulated New Building Construction PR CO, EQ, LA, NO3 GC GA1, E.O. #e. 2.1.7 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility  BE ‐ Must Be Completed Before Grant is  Issued  GC ‐ Grant Closeout  UL ‐ Useful Life 1  1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be less than 20  years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the useful life of the project.  3  For EQ, requirement applies only to projects that include installation; for LA and NO, requirement applies only to projects that include a  construction element. 

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-20 Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 2. Responsibility and Authority of the Sponsor PR ALL BE None 2.2.1 3. Sponsor Fund Availability PR ALL BE None 2.2.2 4. Good Title GEN CO, EQ, LA, NO UL GA 5 1.4.1 5. Preserving Rights and Powers GEN ALL UL GA 4, GA 19, GA 22, GA 24 1.4.2, 1.4.3, 1.4.4 6. Consistency with Local Plans PR ALL BE GA 7, GA 10 2.3.1 7. Consideration of Local Interest PR ALL BE GA 6, GA 8, GA 9 2.3.2 8. Consultation with Users PR ALL BE GA 7, GA 9 2.3.3 9. Public Hearings PR CO, LA11 BE GA 7, GA 8 2.3.4, 2.3.5 10. Metropolitan Planning Organizations PR CO, LA 11 BE GA 6, GA 7 2.3.6 11. Pavement Preventive Maintenance GEN CO, EQ, LA, NO UL 1 GA 19 1.3.4 12. Terminal Development Prerequisites PR CO 12 BE None 2.4.1 13. Accounting System, Audit, and Record Keeping Requirements PR ALL TY GA 1, Statutes # x.; Regulations # b. 2.5.1 14. Minimum Wage Rates PR CO, EQ, LA, NO3 GC GA 1, Statutes # b.; Regulations # h. 2.4.2 15. Veteran's Preference PR ALL GC None 2.4.3 16. Conformity to Plans and Specifications PR CO, EQ, NO GC None 2.4.4 17. Construction Inspection and Approval PR CO, NO GC None 2.4.5 18. Planning Projects PR PL GC None 2.4.6 19. Operation and Maintenance GEN CO, EQ, LA, NO UL1 GA 11, GA20, GA 22.h, GA 22.i 1.3.1 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility  PL ‐ Planning  BE ‐Must Be Completed Before Grant is  Issued  GC ‐ Grant Closeout  TY – Three Years After Grand Closeout  UL ‐ Useful Life 1  1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be less than 20  years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the useful life of the project.  11  Limited to projects involving the location of a new airport, a new runway or a major runway extension.  12  Applies only to terminal construction projects.     

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-21 Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 20. Hazard Removal and Mitigation GEN CO, EQ, LA, NO UL 1 GA 19, GA 21 1.3.2 21. Compatible Land Use GEN CO, EQ, LA, NO UL 1 GA 19, GA 20 1.3.3 22. Economic Nondiscrimination a. General Requirement to provide access on reasonable terms without unjust discrimination GEN CO, EQ, LA, NO UL 1 Remaining Clauses of GA 22 1.1.1 b. Requirement for aeronautical service providers to follow GA 22 in providing services to the public GEN CO, EQ, LA, NO UL 1 Remaining Clauses of GA 22 1.1.2 c. FBO fees and charges GEN CO, EQ, LA, NO UL 1 Remaining Clauses of GA 22, GA 24 1.1.3 d. Air carrier self-service or use of authorized FBOs GEN CO, EQ, LA, NO UL 1 GA 19, GA 22.f, GA 22.h, GA 23 1.1.4 e. Air carrier fees, charges rules and regulations GEN CO, EQ, LA, NO UL 1 Remaining Clauses of GA 22, GA 24 1.1.5 f. Aircraft owner/operator right to self-service GEN CO, EQ, LA, NO UL 1 GA 19, GA 22.d, GA 22.h, GA 23 1.1.6 g. Sponsor commercial services (proprietary rights) GEN CO, EQ, LA, NO UL 1 Remaining Clauses of GA 22, GA 23 1.1.7 h. Reasonable conditions for safety & efficiency GEN CO, EQ, LA, NO UL 1 Remaining Clauses of GA 22, GA 19 1.1.8 i. Prohibitions or limitations on use of airport for safety & efficiency GEN CO, EQ, LA, NO UL 1 Remaining Clauses of GA 22, GA 19 1.1.9 23. Exclusive Rights GEN CO, EQ, LA, NO IN GA 22.d, GA 22.f, GA 22.g 1.1.10 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility  IN ‐ Indefinite, i.e. so long as the Airport is  operating, or until released by the FAA  UL ‐ Useful Life 1  1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be  less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the  useful life of the project.     

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-22   Assurance No. Assurance Title Applicability Project Type Duration Related Assurances Guidebook Section No. 24. Fee and Rental Structure GEN CO, EQ, LA, NO UL1 GA 22.a, GA 22.c, GA 22.e 1.2.1, 1.2.2 25. Airport Revenues GEN ALL IN GA 24, GA 26, GA 1, Statutes, # x. 1.2.3, 1.2.4 26. Reports and Inspections a. Financial and Operations Reports GEN CO, EQ, LA, NO UL1 GA 25, GA 1, Statutes, # x. 1.2.5 b. Airport Development Project Records and Documents PR CO, EQ, LA TY GA1, Statutes # x.; Regulations # b. 2.5.2 c. Noise Compatibility project records and documents PR NO TY GA1, Statutes # x.; Regulations # b. 2.5.2 d. Payments made to, and services and property received from, other units of government GEN CO, EQ, LA, NO UL1 GA 25 1.2.5 27. Use by Government Aircraft GEN CO, EQ, LA, NO UL1 GA 24 1.5.1 28. Land for Federal Facilities GEN CO, EQ, LA, NO UL1 GA 24 1.5.2 29. Airport Layout Plan GEN CO, EQ, LA, NO UL1 1.3.5 30. Civil Rights GEN ALL IN GA 1, Statutes # m., # n., # o., # p.; Executive Orders # f.; Regulations # f., # g., # n., # r., #s. 1.3.6 31. Disposal of Land GEN LA IN GA 5, GA 21 1.4.5, 1.4.6 32. Engineering and Design Services PR ALL BE, GC 3 GA 1, Regulations # l. 2.4.7 33. Foreign Market Restrictions PR CO, EQ, NO GC None 2.5.3 34. Policies, Standards and Specifications PR ALL BE, GC 3 None 2.4.8 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility    BE ‐Must Be Completed Before Grant is  Issued  GC ‐ Grant Closeout  IN ‐ Indefinite, i.e. so long as the Airport  is operating, or until released by the  FAA  TY ‐ Three Years After Grant Closeout  UL ‐ Useful Life 1  1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be  less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the  useful life of the project.   

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-23   Assurance No. Assurance Title Applicabilit y Project Type Duration Related Assurances Guidebook Section No. 35. Relocation and Real Property Acquisition PR CO, NO GC Statutes # e., Regulations # p. 2.4.9 36. Access by Intercity Buses GEN CO, EQ, LA, NO UL 1 GA 24 1.1.11 37. Disadvantaged Business Enterprises PR, GEN ALL UL 1, GC14 GA 1, Regulations # o., # q. 1.3.7, 2.4.10 38. Hangar Construction GEN CO, EQ, LA, NO UL 1 GA 22.a 1.1.12 39. Competitive Access GEN15 CO, EQ, LA, NO UL 1 GA 22.a 1.1.13 Applicability  Project Type  Duration  GEN ‐ General Airport Operation &  Management  PR ‐ AIP Funded Planning, Design or  Development Only  ALL ‐ All Type of Projects  CO ‐ Construction  EQ ‐ Equipment Acquisition  LA ‐ Land Acquisition  NO ‐ Noise Compatibility    GC ‐ Grant Closeout  IUL ‐ Useful Life 1    1  For construction projects, not to exceed 20 years. Useful life of land is indefinite. Useful life obligation for equipment may be  less than 20 years. Useful life obligations of privately owned sponsor have a minimum duration of 10 years regardless of the  useful life of the project.  3  For EQ, requirement applies only to projects that include installation; for LA and NO, requirement applies only to projects  that include a construction element.  14 Compliance with DBE requirements for federally assisted projects (49 CFR Part 26) is required until grant closeout.  Compliance with DBE participation requirements for airport concession activity (49 CFR Part 23) is required for the useful life  of the project, but some Part 23 requirements may be indefinite.  15 Applies only to medium and large hub airports (at least 0.25% of annual passenger boardings (enplanements).   

ACRP Project 03-38 (FY 2015) Understanding FAA Grant Assurance Obligations Summary S-24 Section S-7 Consequences of Non-Compliance This Guidebook was developed to assist Sponsors, airport staff and other Stakeholders to better understand Grant Assurance requirements. This improved understanding, in turn, may better enable Sponsors and airport staff to avoid the consequences of non-compliance outlined in this section. Although the provisions of the Grant Assurances represent requirements, they are requirements that a Sponsor voluntarily undertakes through execution of a grant agreement. Therefore, the FAA’s preferred method to achieve compliance is through voluntary cooperation, after providing a Sponsor guidance on what the Grant Assurances require, and where the Sponsor’s actions or policies fall short. If voluntary cooperation is not successful, the FAA must complete an administrative process to determine whether a violation has occurred, and specify corrective actions and the consequences (sanctions) if the corrective actions are not accomplished. Even after the administrative process and a formal determination of violation, the FAA will still seek to obtain voluntary cooperation by the Sponsor to achieve corrective action before imposing sanctions. As a result, a substantial period of time may pass between the FAA’s first receipt of information about a possible non-compliance situation and any FAA action levying sanctions. The most common consequence, when the FAA determines a Sponsor to be in non-compliance, is withholding of grants or grant payments. This tool is available to the FAA to address non-compliance for all 39 numbered Grant Assurances. In the case of project-specific requirements, the withholding may take the form of withholding a grant offer for a specific project, or terminating a project. In the case of generally applicable requirements, the withholding may take the form of declaring the Sponsor ineligible to receive new grants, or withholding payments for reimbursement under existing grants. A civil enforcement action in U.S. district court is also available to the FAA, with the concurrence of the U.S. Department of Justice; however, this remedy is rarely used. Specific Grant Assurances have additional sanctions, as shown below.  GA #1, Davis Bacon Act – Criminal Enforcement  GA #1, Fair Labor Standards Act – Criminal Enforcement; Suspension and Debarment  GA #1, Contract Work Hours and Safety Standards Act – Criminal Enforcement  GA #1, 29 CFR Parts 1, 3, 5 – Criminal Enforcement  GA #1, 41 CFR Part 60 – Criminal Enforcement  GA #1, 49 CFR Part 20 – Civil Penalties  GA #14, Minimum Wage Rates – Criminal Enforcement; Suspension and Debarment  GA #25, Airport Revenues – Civil Penalties, Treble Damages, Withholding of Passenger Facility Charge (PFC) Approval; Withholding of Non-AIP Grants under Title 49 of the USC

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TRB's Airport Cooperative Research Program (ACRP) Web-Only Document 44: Understanding FAA Grant Assurance Obligations Volume 1: Guidebook provides a comprehensive summary of all the requirements included in the 39 Grant Assurances applicable to airport sponsors, who are owners or operators of the airport that execute the grant agreements. The Guidebook describes the requirements, identifies actions that are required, those that are prohibited, identifies exceptions, describes the duration and applicability of the requirements, and discusses the potential consequences of non-compliance.

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